EXHIBIT 99.1
WOLVERINE TUBE, INC.
P R E S S R E L E A S E
Contact: Thomas B Sabol
Senior Vice President
Chief Financial Officer
(256) 580-3500
================================================================================
WOLVERINE TUBE ANNOUNCES RESTRUCTURING DETAILS
HUNTSVILLE, ALABAMA, (SEPTEMBER 8, 2005) - Wolverine Tube, Inc. (NYSE:WLV) today
announced several strategic initiatives in its continuing effort to reduce
operating expenses, enhance cash flow and improve operating efficiencies. These
initiatives include a reduction in the Company's corporate headquarters'
workforce by nearly twenty percent, a reduction of certain support functions in
its U.S. manufacturing operations, a reduction in leased facilities for
executive and administrative offices and the continued process of production
rationalization in response to global competition. The Company currently expects
to take a pre-tax restructuring charge over the next few quarters totaling
approximately $1.5 million ($0.07 per diluted share after tax) to account for
these initiatives, including severance and other related expenses. These actions
should result in year-over-year cost savings of up to approximately $4.0 million
annually, once fully implemented, primarily reflecting reduced Selling, General
and Administrative expenses.
"While such decisions are difficult, they are at the same time necessary," said
Dennis Horowitz, Chairman and Chief Executive Officer. "We intend to continue to
drive changes that will allow us to compete more profitably on a global basis.
We believe that these actions will more powerfully position our Company going
forward." Dennis Horowitz continued, "Specifically, the Company will reduce
headcount across a broad number of corporate functions. At the same time,
efforts within these functions will be more sharply focused so as to provide the
same, or even a more enhanced, level of support to our customers on a global
basis."
The Company will also be reducing certain indirect personnel, administrative
functions and support staff at various U.S. manufacturing operations. The
Company will relocate its corporate credit function from its current leased
facility to existing office space at the Company's Decatur, AL corporate
location and the current Huntsville, AL headquarters leased office space will be
reduced by nearly fifty percent.
The Company plans to expand its Shanghai, China operation to meet local
increasing customer demand for technical tube and fabricated products. As
previously discussed, the Company is nearing the completion of the relocation of
its North American technical tube manufacturing operations from its Decatur, AL
facility to facilities in Shawnee, OK and Monterrey, Mexico. Further, the
Company continues to expand its fabricated products offering in Mexico.
Dennis Horowitz commented, "While these actions affect a broad range of
functions and are far-reaching, they also enable us to continue to support
customers at the high level they have come to expect from Wolverine. We will
continue to take steps to match our business with current and anticipated global
demand, and we will continue to examine prudent ways to reduce expense levels
and increase business. With these changes and our continued focus on profit and
cash generation, Wolverine should be in a stronger position to compete in an
ever changing global marketplace."
Corporate Headquarters
200 Clinton Avenue West, Suite 1000
Huntsville, AL 35801
WOLVERINE TUBE, INC.
Page 2
ABOUT WOLVERINE TUBE, INC.
Wolverine Tube, Inc. is a world-class quality partner, providing its customers
with copper and copper alloy tube, fabricated products, metal joining products
as well as copper and copper alloy rod, bar & other products. Internet addresses
http://www.wlv.com and http://www.silvaloy.com.
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this press release are made pursuant to the "Safe
Harbor" provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements use such words as "may", "should", "will",
"expect", "believe", "plan", "anticipate" and other similar terminologies. This
press release contains forward-looking statements regarding the Company's
strategic restructuring initiatives and the expected effect of these initiatives
on the Company's business and results of operations. Such statements are based
on current expectations, estimates and projections about the industry and
markets in which the Company operates, as well as management's beliefs and
assumptions about the Company's business and other information currently
available. These forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from those
stated or implied by such forward-looking statements. The Company undertakes no
obligation to publicly release any revision of any forward-looking statements
contained herein to reflect events or circumstances occurring after the date
hereof or to reflect the occurrence of unanticipated events. With respect to the
Company's strategic restructuring initiatives and the expected effect of these
initiatives, factors that could affect actual results include, without
limitation: unanticipated delays, difficulties or costs in implementing the
restructuring initiatives; the Company's ability to achieve and sustain
anticipated cost savings, operating efficiencies and cash flow improvement from
the planned restructuring; the effect of the restructuring initiatives on
competitiveness and customer demand, including the ability of the Company to
meet customer expectations with streamlined administrative and support
personnel; unanticipated costs or delays in the continued ramp-up of production
and the ability to sustain cost efficiencies at the Monterrey, Mexico facility;
the success of the Company's global expansion activities including the ability
to cost-effectively expand operations in China; the level of customer demand in
global markets, including in China and Mexico; changes in technology and the
Company's ability to maintain technologically competitive products; and
employee-related expenses, including severance, pension and healthcare costs. A
discussion of risks and uncertainties which could cause actual results to differ
from those contained in the forward-looking statements can be found in the
Company's Annual Report on Form 10-K for the most recently ended fiscal year and
reports filed from time to time with the Securities and Exchange Commission.
-END-